Thursday, August 25, 2016

Brexit Effect works to Boost Diageo shares / Companies / BrExit

By: Submissions

Alexander Bowring writes: After the referendum result was announced, Diageo CEO Ivan Menezes went on to say the decision was “better for the UK, better for Diageo and better for the Scotch whisky industry that we remain in.” This begs the question, why have Diageo’s shares risen dramatically immediately following the leave vote? Sitting at under £18 prior to the result, they jumped to almost £20 each, signalling a new high for the last 12 months.

Thursday, August 25, 2016

Need-to-Know Tips for Safeguarding Your Precious Metals / Commodities / Gold and Silver 2016

By: MoneyMetals

Gold and silver investors have strong opinions about third-party storage of metals. Privacy, the lack of counterparty risk, and precious metals’ role as “crisis money” are among the most attractive features of physical bullion. So it is no surprise that many investors are totally committed to storing metals at home or someplace else that is both private and accessible 24/7.

We wholeheartedly agree with that sentiment and always recommend personal possession when it comes to at least some of your metals. However, there are a number of circumstances where third-party storage makes a heck of a lot of sense. Let’s take a look at the most common…

Thursday, August 25, 2016

Can Stocks Survive Without Stimulus? / Stock-Markets / Stock Markets 2016

By: Clif_Droke

A fiery debate rages among investors over the question of central bank stimulus.  The question is whether the stock market needs stimulus in order to advance, and is stimulus only creating a bubble which will burst at some point and lead to depression? 

Regardless of the philosophical rectitude of central bank intervention, there can be no denying its efficacy.  The most fundamental truth of the financial market is that “liquidity, liquidity, liquidity” is the market’s lifeblood.   Financial stimulus contains the seeds of recovery and will cure any bear market in equities, as I’ll attempt to prove in this commentary.  The truth of this assertion can be found in the very wisdom of King Solomon, who in the book of Ecclesiastes wrote that “money answers all things.”  Stocks will always, without exception, respond positively to stimulus – provide there are no countervailing obstacles in the way [e.g. tax increases, margin requirements]. 

Thursday, August 25, 2016

Why Putin Might Be on His Way Out / Politics / Russia

By: John_Mauldin

BY GEORGE FRIEDMAN : Russian President Vladimir Putin recently did three very interesting things.

First, he fired his long-time aide and chief of staff, Sergei Ivanov, and moved him to a lower position. A few weeks earlier, Putin fired at least three regional governors and replaced them with his personal bodyguards.

Removing that many governors is a bit odd. Replacing them with bodyguards is very odd. Then removing someone like Ivanov is extremely odd.

Second, Russia raised pressure on Ukraine. The Russians claimed that Ukrainian special forces attacked Russian-held Crimea. They announced that they sent S-400 anti-air missiles to Crimea. With a 250-mile range, these missiles can reach deep into Ukraine.

Thursday, August 25, 2016

Bond Guru Gary Shilling - The Bond Market Rally of a Lifetime / Interest-Rates / US Bonds

By: John_Mauldin

In 1981, as inflation and Treasury yields were screaming to new heights, my good friend Gary Shilling announced, “We’re entering the bond rally of a lifetime.” He was right. That bond rally is already 35 years old, and I think it will continue.

Gary also thinks the rally is still underway. He backs up that claim with a compelling case for Treasurys and for the “long bond” (the 30 year).

Gary recalls his famous public debate on stocks versus bonds with Professor Jeremy Siegel of Wharton, in 2006. This was just before the Great Recession kicked in and sent Treasury prices sky-high. Siegel remarked to the audience, “I don’t know why anyone in their right mind would tie up their money for 30 years for a 4.75% yield” (the then-yield on the 30-year Treasury).

Thursday, August 25, 2016

Here’s the Real Reason Behind Closer Russia-Turkey Ties / Politics / Turkey

By: John_Mauldin

BY GEORGE FRIEDMAN : Russian President Vladimir Putin and Turkish President Recep Tayyip Erdoğan met on Tuesday. It is not clear what came of it, but it is clear what is at stake.

Russia is weakening. The state of the economy is now the main issue (read my extensive overview of Russia’s geopolitical situation) Ukraine remains at the center of its strategic concerns. Turkey is an emerging power. It is managing its internal crisis effectively, if brutally.

Thursday, August 25, 2016

Protectionism in 21st Century Is More Dangerous Than Most People Think / Economics / Protectionism

By: John_Mauldin

A monster debate has been going on in economic circles on the reasons for Brexit/Trump/Sanders and the developed world’s rejection of the status quo.

There are many explanations, but it all goes back to my thesis that the benefits of globalization have been unevenly handed out. Those who have been on the short end of the distribution curve are pushing back.

Thursday, August 25, 2016

A Zombie Financial System, Black Swans and a Gold Share Correction / Stock-Markets / Financial Crisis 2016

By: The_Gold_Report

Bob Moriarty of 321Gold says that since the crash of 2008, the financial system has become a zombie, and he urges investors to pay attention to when they take some money off the table.

Thursday, August 25, 2016

The World’s Monetary System Is Broken & Costing Overseas Business / Stock-Markets / Global Financial System

By: Chris_Vermeulen

Low and negative yields mean that no one has the confidence to invest in real capital projects. Investors would much rather lose money over a 10-year horizon than invest in building dams, repairing pipes, creating better grids, starting new businesses, etc. A new monetary order must replace the existing one, and as soon as possible. It will likely be one that China is determined to dominate this time around.

Thursday, August 25, 2016

OPEC’s Output Freeze: What Has Changed Since Doha? / Commodities / Crude Oil

By: OilPrice_Com

It’s possible that OPEC is crying wolf with hints of an output freeze next month in Algiers; but it’s also possible that they are ramping up production to take the sting out of a freeze. This is a delicate balancing act that the Saudis need to play very carefully.

The official chatter is that the OPEC meeting in Algeria from September 26 to 28 could conclude with an agreement to freeze production by the member nations, with even Russia joining forces in a freeze that may prevent further oil price erosion. But everyone’s a bit gun-shy after the false hopes of the last round in Doha—even if a freeze at levels that existed then wouldn’t have meant much either—and it’s hard to blame them. The question is, how many times can the Saudis cry wolf without forever losing the ability to leverage this chatter to affect a rise in oil prices?

Wednesday, August 24, 2016

Stock Market Sloppy Pullback Day, but Still a Positive Close / Stock-Markets / Stock Markets 2016

By: Harry_Boxer

The stock market indices had an up day, but they closed near the low end of the range, and the S&P 500 closed at the low for the day. It was such a strong gap up in the morning that it ended profitable on the session, but wasn’t a good close.

The day started out with a big gap up, they ran up to test the old, 52-week highs and all-time highs on both the S&P 500 and Nasdaq 100, but fell short of both, and sold off until midday when they bounced. They were unable to do anything, and sold off again, finishing near the lows for the day, but, still, it was an up day.

Wednesday, August 24, 2016

Proof Positive the Economic Recovery Is a Myth / Economics / Economic Theory

By: Graham_Summers

For years, I’ve been warning that all claims of economic “recovery” in the US are complete fiction.

We now have definitive proof in the form of tax receipts.

Wednesday, August 24, 2016

Are Central Banks Secretly Preparing For Another Financial Crisis? / Stock-Markets / Financial Crisis 2016

By: Graham_Summers

A major crisis warning signal just hit.

It concerns “behind the scenes” liquidity for Central banks.

Here’s how it works.

Wednesday, August 24, 2016

Crude and the Commodity Cycle / Commodities / Crude Oil

By: Tony_Caldaro

Over the years we have written many times about the 34-year commodity cycle. Generally commodities rise as a group in a 13-year bull market, which is followed by a 21-year bear market. Each specific commodity has its own particular cycle which generally fits within the broader 34-year commodity cycle.

Wednesday, August 24, 2016

Merkel Prepares For a Deliberate Crisis While White House Plans For a Disastrous Succession / Politics / War on Terror

By: Jeff_Berwick

Europe is convulsed by Islamic immigration, Brexit and a brutal economic state-of-affairs that are making it difficult for the average European citizen to live anything like a normal life or plan for the future.

Germany is one place where this sort of fear is being aimed at the population on a daily basis. Angela Merkel’s government has just urged Germans to stockpile enough food and water for ten and five days, respectively “in case of an attack or catastrophe.” Germany is also mulling a return to a military draft.

Wednesday, August 24, 2016

3 reasons as to why oil stocks are smart investments / Companies / Oil Companies

By: Submissions

Alexander Bowring writes: It is true that oil stocks have taken a massive nosedive. In fact, the crash that caused the downturn was so seismic that it obliterated more than $1 trillion from portfolios since late 2014. You wouldn’t be wrong to be hesitant about placing your money, and your trust, in oil stocks because of this. You shouldn’t let this keep you from oil stocks though; this article explains the three reasons why they make for smart investments.

Wednesday, August 24, 2016

Precious Metals and Financial Blasphemy, Part 2 / Commodities / Gold and Silver 2016

By: Dr_Jeff_Lewis

Fiat money does not have any intrinsic value. What value it has depends on public confidence in the currency's issuer. Legal tender is any currency declared legal by a government. Many governments issue a fiat currency and then make it legal tender by setting it as the standard for repaying debt. – “Investopedia”

Hedging against a currency collapse is one of the primary reasons to hold precious metals is physical form. 

Tuesday, August 23, 2016

Suspicious Reversal in Gold Price / Commodities / Gold and Silver 2016

By: P_Radomski_CFA

Gold moved lower early during yesterday's session, but came back up later on and finally gold ended the session only less than $3 lower. Can we view such a reversal as a bullish sign? Not necessarily – a reversal should be confirmed by high volume and yesterday's session wasn't. Consequently, one needs to look at other parts of the precious metals sector for confirmations.

Tuesday, August 23, 2016

Why is This Hated Stock Market so Resilient? / Stock-Markets / Stock Markets 2016

By: Sol_Palha

Do not let yourself be tainted with a barren skepticism.Louis Pasteur

The market has resisted all attempts to correct. We know why it is not crashing; this has to do with mass psychology, but what’s preventing it from letting out a significant dose of steam.  The table below might hold the answer.   We looked at all 30 components of the Dow monthly timelines utilising our indicators, and the results were quite surprising, to say the least.  On the monthly charts, each bar represents one month’s worth of data so these are long-term charts, and they usually provide a much clearer picture of what the futures holds as opposed to the shorter term charts.

Tuesday, August 23, 2016

Stock Market Top - Fasten your Seatbelts! / Stock-Markets / Stock Markets 2016

By: Ed_Carlson

Last week we asked the question 'Is the Dow headed into the final top at point 23 - or is it engaged in the typical 3-5 wave correction seen most of the time at this point in the pattern?' With last week's new high in the Dow it seems safe to assume that the 3-5 wave correction found between points 21 and 23 in every Three Peaks/Domed House pattern since 1901 (save 4 instances) has been skipped for a 5th time.